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    Calculating optimal number of workers in the given case

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    A cost minimizing firm has an output function of the form y=2K^(.5) L^.(5)
    K and L are quantity of physical capital and labor employed respectively.

    Rental rate of capital R = $100
    Wage of Labor W= $50

    If this cost minimizing firm employs 50 units of capital (k=50), how many workers does this firm employ?

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    https://brainmass.com/economics/output-and-costs/calculating-optimal-number-workers-given-case-389088

    Solution Preview

    y=2K^0.5L^0.5

    Marginal Product of capital=MPK=dy/dK=2*0.5*K^(-0.5)L^0.5= K^(-0.5)L^0.5

    Marginal Product of ...

    Solution Summary

    The solution describes the steps to calculate optimal number of workers in the given case.

    $2.19

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